CanAlaska Completes Option Agreement Deal On Waterbury East And Constellation Uranium Projects Bayridge has Staged Option to Earn up to 80% Interest in both properties for $10M Exploration Spend; Focus on Tier 1 Eastern Athabasca Basement and Unconformity Uranium
CanAlaska Completes Option Agreement Deal
On Waterbury East And Constellation Uranium
Projects
Bayridge has Staged Option to Earn up to 80% Interest in both
properties for $10M Exploration Spend; Focus on Tier 1
Eastern Athabasca Basement and Unconformity Uranium
Targets Close to Infrastructure
Vancouver, British Columbia--(Newsfile Corp. - March 26, 2024) -
CanAlaska Uranium Ltd. (TSXV:
CVV) (OTCQX: CVVUF) (FSE:
DH7)
("CanAlaska" or the "Company") is pleased to announce that it
has signed arm's length definitive agreements effective March 25, 2024 with Bayridge Resources Corp.
("Bayridge") to allow Bayridge to earn up to an 80% interest in each of the Waterbury East and
Constellation Projects (the "Projects") in the Athabasca Basin, Saskatchewan. The Waterbury East
Project is located in the northeastern Athabasca Basin 25 kilometres northeast of the Cigar Lake Mine
and covers 1,337 hectares (Figure 1). The Constellation Project is located in the southeastern
Athabasca Basin 60 kilometres south of the Key Lake Mine and Mill Complex and covers 11,142
hectares (Figure 2).
Figure 1 – Waterbury East Project Location
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Waterbury East Agreement
Bayridge may earn up to an 80% interest in the Waterbury East Project by undertaking work and
payments in three defined earn-in stages. Bayridge may earn an initial 40% interest (Stage 1) in the
Waterbury East Project by paying the Company $265,000 cash, issuing $370,000 of common shares of
Bayridge and incurring $1,500,000 in exploration expenditures on the Project within 18 months of the
date of the definitive agreement (the "Waterbury East Agreement Date"). Bayridge may earn an
additional 20% interest for a total 60% interest (Stage 2) in the Waterbury East Project by paying to the
Company a further $220,000 cash and issuing an additional $385,000 of Bayridge common shares
concurrent with providing notice that it wishes to proceed with the Stage 2 earn-in, and by incurring a
further $1,500,000 in exploration expenditures on the Waterbury East Project within 12 months of
commencing the Stage 2 earn-in (approximately 2.5 years after the Waterbury East Agreement Date).
Bayridge may earn an additional 20% interest for a total 80% interest (Stage 3) in the Waterbury East
Project by paying to the Company a further $275,000 cash and issuing an additional $550,000 of
Bayridge common shares concurrent with providing notice that it wishes to proceed with the Stage 3
earn-in, and by incurring an additional $2,000,000 in exploration expenditures on the Waterbury East
Project within 12 months of commencing the Stage 3 earn-in (approximately 3.5 years after the
Waterbury East Agreement Date).
After successful completion of (a) Stage 1, if Bayridge elects to not enter the next stage or fails to make
the Stage 2 option payments when and as required; or (b) Stage 2, if Bayridge elects to not enter the
next stage or fails to make the Stage 3 option payments when and as required; or (c) Stage 3, a joint
venture will be formed and the parties will either co-contribute thereafter on a simple pro-rata basis or
dilute on a pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically
forfeit its interest in the Project and in lieu thereof will be granted a 2% net smelter return royalty on the
Project.
Constellation Agreement
Bayridge may earn up to an 80% interest in the Constellation Project by undertaking work and payments
in three defined earn-in stages. Bayridge may earn an initial 40% interest (Stage 1) in the Constellation
Project by paying the Company $225,000 cash, issuing $315,000 of common shares of Bayridge and
incurring $1,500,000 in exploration expenditures on the Project within 18 months of the date of the
definitive agreement (the "Constellation Agreement Date"). Bayridge may earn an additional 20%
interest for a total 60% interest (Stage 2) in the Constellation Project by paying to the Company a further
$165,000 cash and issuing an additional $290,000 of Bayridge common shares concurrent with
providing notice that it wishes to proceed with the Stage 2 earn-in, and by incurring a further $1,500,000
in exploration expenditures on the Constellation Project within 12 months of commencing the Stage 2
earn-in (approximately 2.5 years after the Constellation Agreement Date). Bayridge may earn an
additional 20% interest for a total 80% interest (Stage 3) in the Constellation Project by paying to the
Company a further $210,000 cash and issuing an additional $415,000 of Bayridge common shares
concurrent with providing notice that it wishes to proceed with the Stage 3 earn-in, and by incurring an
additional $2,000,000 in exploration expenditures on the Constellation Project within 12 months of
commencing the Stage 3 earn-in (approximately 3.5 years after the Constellation Agreement Date).
Figure 2 – Constellation Project Location
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After successful completion of (a) Stage 1, if Bayridge elects to not enter the next stage or fails to make
the Stage 2 option payments when and as required; or (b) Stage 2, if Bayridge elects to not enter the
next stage or fails to make the Stage 3 option payments when and as required; or (c) Stage 3, a joint
venture will be formed and the parties will either co-contribute thereafter on a simple pro-rata basis or
dilute on a pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically
forfeit its interest in the Project and in lieu thereof will be granted a 2% net smelter return royalty on the
Project.
All Bayridge shares issued to CanAlaska under both option agreements will be subject to a hold period
expiring four months and one day after their date of issue pursuant to applicable Canadian securities
laws. In addition, CanAlaska has agreed to voluntary resale restrictions on such shares whereby 25% of
the shares will be released from voluntary resale restrictions 3, 6, 9 and 12 months after their issue date.
During all stages of both option agreements, Bayridge will be operator of the Projects and will be entitled
to charge an operator fee. Bayridge will have deciding voting rights on annual exploration programs
while sole funding at the various option stages.
An Area of Mutual Interest ("AMI") will extend two kilometres from the outer boundary of the Projects,
excluding all properties within such area that are currently held by CanAlaska at time of signing the
definitive agreement.
CanAlaska CEO, Cory Belyk, comments,
"Bringing substantial exploration investment into the
Waterbury East and Constellation projects is another significant milestone for CanAlaska and its
shareholders. This spend commitment by Bayridge will allow for definition and advancement of
multiple priority exploration targets in two large eastern Athabasca Basin projects both located close
to uranium mining and milling infrastructure. As stated before, the time is now for discovery in this
region and these projects have significant discovery potential laying in wait. We look forward to
working with the Bayridge team to advance these projects toward discovery. I thank Bayridge
management for working quickly toward completion of these deals so that exploration can begin as
soon as possible in the very early stages of this uranium bull market."
About the Waterbury East Project
The Waterbury East Project is located in the northeastern Athabasca Basin, 25 kilometres northeast of
the Cigar Lake Mine. The Project has approximately 200 metres of Athabasca sandstone cover
overlying the basement rocks of the Wollaston Domain. The Project consists of 1 mineral claim covering
1,337 hectares.
Early exploration on the Waterbury East Project consisted of historical regional and project scale ground
and airborne geophysical surveys, followed by focused prospecting and boulder sampling programs.
CanAlaska acquired the Project in the early 2000's through staking and completed property-wide
airborne geophysical surveys, including GEOTEM and VTEM. The VTEM survey identified a 7 kilometre-
long northeasterly-trending conductivity corridor coincident with an AIIP anomaly. Six drillholes were
completed on the conductive corridor, with results highlighted by faulted and altered basement rocks with
local uranium enrichment. Off property to the south, an AIIP anomaly of similar style and intensity is
present on the Dawn Lake project that contains mineralized historical drillhole Q11A-006, which contains
7.2 metres @ 1.86% eU
3
O
8
from 213.5 metres.
About the Constellation Project
The Constellation Project is located in the southeastern Athabasca Basin, 60 kilometres south of the
present-day Athabasca Basin edge and the Key Lake Mine and Mill complex along Highway 914. The
Project consists of 13 mineral claims for a total of 11,142 hectares.
Historical exploration on the Constellation Project consists of prospecting and geological mapping that
were completed in conjunction with airborne radiometric, electromagnetic, and magnetic surveys. These
historical surveys identified electromagnetic conductors associated with magnetic lows that flank
magnetic highs, which is an analogous geological framework for Athabasca style uranium deposits.
These geophysical surveys were followed by geological mapping and wide-spaced prospecting
programs both on property and along trend to the south. Prospecting along trend identified outcrop-
hosted high-grade uranium mineralization in Getty-Minerals Zones 2-6 and 2-3, located approximately
10 kilometres from the Project boundary. These showings returned uranium mineralization from grab
samples in outcrop grading 2.787% U
3
O
8
and 4.60% U
3
O
8
. The mineralized magnetic low corridor
along which the Getty-Minerals Zones are hosted trends onto the Constellation Project. In the early
2000's, geological mapping and geochemical sampling on the Project confirmed the magnetic high is a
central core of Archean gneiss which is flanked by graphitic metasediments. In addition, structural
lineaments in the magnetic lows were interpreted, and may represent large scale faulting. In total, the
Constellation Project contains over 18 kilometres of untested prospective target area.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQX: CVVUF) (FSE: DH7) holds interests in approximately
500,000 hectares (1,235,000 acres), in Canada's Athabasca Basin - the "Saudi Arabia of Uranium."
CanAlaska's strategic holdings have attracted major international mining companies. CanAlaska is
currently working with Cameco and Denison at two of the Company's properties in the Eastern
Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world's
richest uranium district. The Company also holds properties prospective for nickel, copper, gold and
diamonds. For further information visit
www.canalaska.com
.
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for
this news release is Nathan Bridge, MSc., P. Geo., Vice-President Exploration for CanAlaska Uranium
Ltd., who has reviewed and approved its contents.
Technical Disclosure: The historical results contained within this news release have been captured from
Saskatchewan Mineral Assessment Database ("SMAD") reporting as available and may be incomplete
or subject to minor location inaccuracies. Management cautions that historical results were collected and
reported by past operators and have not been verified nor confirmed by a Qualified Person but form a
basis for ongoing work on the subject properties. Management cautions that past results or discoveries
on proximate land are not necessarily indicative of the results that may be achieved on the subject
properties.
On behalf of the Board of Directors
"Cory Belyk"
Cory Belyk, P.Geo., FGC
CEO, President and Director
CanAlaska Uranium Ltd.
Contacts:
Cory Belyk, CEO and President
Tel: +1.604.688.3211 x 138
Email:
General Enquiry
Tel: +1.604.688.3211
Email:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future are forward-looking
statements.
These forward-looking statements involve numerous assumptions made by the Company
based on its experience, perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the circumstances. In addition, these
statements involve substantial known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company's control.
Readers should not place undue
reliance on forward-looking statements.
Except as required by law, the Company does not intend to
revise or update these forward-looking statements after the date hereof or revise them to reflect the
occurrence of future unanticipated events.
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